Dutch global dairy giant Royal FrieslandCampina plans to invest €100 million in the China market this year, its CEO Hein Schumacher said in Beijing.
The investment will be used to expand the production and sales channels of Friso, the company’s high-end infant and toddler formula brand, and further expand its sales in smaller Chinese cities, as it projected that about 50 per cent of the future growth in China will come from third to sixth-tier cities, according to the company.
Effective Dec. 1, 2017, China is unilaterally lowering its cheese tariffs from 12 percent to 8 percent. The reduction is part of a broader package of tariff cuts on food and consumer goods China announced last week to bolster consumer choice. Cheese was included among those products.
Over the last decade, China’s cheese imports soared more than seven-fold to nearly 100,000 metric tons. Already a top-10 cheese buyer, it is on pace to become the largest cheese importer in the world in the coming years.
Centrale del Latte d’Italia has entered into a strategic partnership with the Alibaba Group, global leader in online and mobile sales, to sell long-life (UHT) whole milk to the Chinese market.
Central del Latte d’Italia (CLI) products will be sold through Tmall, Alibaba Group’s largest Chinese business to consumer e-commerce platform, which will ensure access to a potential market of over 460 million active consumers annually. Tmall’s Chinese consumers will be able to purchase 100% Italian long-life milk (UHT milk with a shelf life of 300 days), under the Mukki brand.
New analysis from Euromonitor International suggests that China will replace the US as the world’s largest dairy market by 2022 as consumer demand for dairy grows in China, driven by an expanding appetite for yogurt, while US consumers become more wary of milk and flavoured milk drinks which they are perceiving to be unhealthy due to their high sugar content.
This will be the the group’s sixth production plant in China, having started with its Guangzhou facility in 2002.
The company says that the Guangdong province is witnessing strong demand for its product in its central cities, but it also expects sales to rise in suburban areas as health awareness grows.
The Foshan plant is planned to be operational by March 2019, and will have the capacity to produce 1.2 million bottles of Yakult and Yakult Light per day.
In the study by Yueming Zhao et al. at Key Laboratory of Dairy Science, Northeast Agricultural University, Harbin China, the team developed a rapid, specific, and sensitive loop-mediated isothermal amplification technique combined with a lateral flow dipstick (LAMP-LFD) method to detect Salmonella targeting the siiA gene in powdered infant formula (PIF).
The results showed that the method of LAMP-LFD had a high diagnostic specificity of 100% for detection of Salmonella in PIF.
The results verified that the method of LAMP-LFD targeting the siiA gene is rapid, accurate, and sensitive for Salmonella detection in PIF, and that PMA shows great potential to be widely used to eliminate the amplicon contamination risk generated by the highly sensitive LAMP reaction in the detection process.
Read the report in Journal of Dairy Science
Finnish Valio has started exporting lactose-free milk powders meant for the consumer market in China. Valio’s products are the first lactose-free milk powders on the market. Valio milk powders will be available from China’s leading online grocery stores.
“Compared to the rest of the world, people in China do not use milk products that much yet, but their usage is growing constantly. This also serves to increase awareness of lactose intolerance and its symptoms. Valio is a global pioneer in developing lactose-free products, and the demand for our expertise is growing in China”, says Kari Finska, Senior Vice President for Valio.
“Even though we are a new face in China’s highly competitive consumer market, the opportunities in China are significant. At least 80% of the population is lactose intolerant. Initially, the export amounts will be small compared to other Valio exports.”
Tetra Pak and DeLaval, sister companies in the Tetra Laval Group, have signed a five year agreement with the Dairy Association of China to provide training to Chinese dairy farm managers. The signing ceremony was attended by both the Chinese and Swedish Ministers of Agriculture, who have a Memorandum of Understanding to increase co-operation in agriculture.
Since 2008, the Chinese government has been driving a transition from household farming activities, involving just a handful of cows, to medium- or large-sized farms, which have more than 100 milk-producing cows. Their aim is to improve farming efficiency, increase product quality and enhance standards of animal welfare. By 2020, the government hopes to raise the proportion of dairy cows reared on such farms to 60%, compared with 45% today. However, a shortage of qualified managers, capable of running operations of this scale, threatens to prevent them from achieving that ambition.
Through the agreement signed today, 150 managers will be trained during the next five years, providing them with the skills required to run larger-scale dairy farms.
Danone rose as much as 3 percent in Paris and Nestle SA also gained after China said it will lift its one-child policy, boosting the outlook for sales of infant nutrition. Danone, Nestle and Mead Johnson are among the biggest players in China’s $19 billion baby-formula market, which represents about a third of the industry globally.
There’s been a worldwide boom in the flow of baby food to China, with quantities ranging from single cans sold via Amazon.com Inc. to 25 metric-ton orders through suppliers on Alibaba.com. Since a 2008 infant-formula scandal that hospitalized 50,000 babies, the Chinese have sought out foreign-made brands.
Raisio’s new Benecol partner Neptunus is launching Benecol powdered drink in China. This expansion to the world’s most populated country supports Raisio’s aim to open up new markets for Benecol products together with its licensing partners.
Benecol powdered drink will be first sold at approximately 1,700 Nepstar stores, mainly in large cities of the east coast of China. The aim is to have Benecol powdered drink available in selected hospital stores and sales channels of health care professionals in six months. In the long term, Neptunus will focus on significantly expanding its sales network.